The Sunday Times examines how a growing number of SME owners are looking to sell up ahead of next year’s general election. Under the present government’s ‘Entrepreneurs’ Relief’, business owners who sell out are taxed at 10% on capital gains of up to £10m, compared with the normal capital gains rate of 28%. However, there have been suggestions the tax break will be made less generous or scrapped entirely if Labour regains power.
Source: The Sunday Times
We say…. It is a well-known fact that entrepreneurism fuels a successful economy. Entrepreneurism also drives job creation as well as a host of other economic benefits. Any government ought to encourage rather than stifle entrepreneurism. By stifling entrepreneurism the economy suffers and overall tax receipts would decrease.
Of course the rumours could all be scare-mongering, but given that suggestions are already being made that Labour would reduce or scrap Entrepreneurs’ Relief they ought to come out now and deny those rumours if they are not true. And if they are true, then we are at least entitled to know what we are (or are not) voting for.